Jakarta, Sept. 28 -- Bank Indonesia kept its key benchmark interest rate unchanged at 5.75 percent in September, pointing to well-controlled inflation and a negative output gap that allows space for economic expansion, an official said, Monday.

Speaking during a parliamentary hearing with Commission XI of the House of Representatives, Bank Indonesia Senior Deputy Governor Destry Damayanti said consumer price growth remains comfortably within the central bank's target range, with core inflation recorded at 2.92 percent year-on-year in August.

"Our anchor is inflation, and we are still comfortable with inflation at its current level. Moreover, we see that core inflation is still around 2 percent," Damayanti told lawmakers.

Stress-testing...